Ten steps to beating ID fraud: How you can avoid falling victim to the conmen

About one third of Britons can expect to be a victim of identity theft at least once in their lifetime. And it can often take months for people to realise they have had their identity stolen.

Identity fraud can be scary, stressful and incredibly frustrating, but it is avoidable if you take the right steps to protect yourself.

Read our hints to help ensure you're not the next criminal target of fraudsters looking to exploit your bank account, credit card or trying to secure money in your name...

Play it safe: Our tips can keep you out of the hands of fraudsters

1. Notify companies of a change of address

One of the easiest ways for a fraudster to start assuming your identity is by intercepting your mail. So if you move house, make sure you inform your bank, utility providers and anyone else who might send you a bill.

Think about it. Last time you went to open a bank account, all you needed was a few gas bills in your name to prove where you live. If you're slow to let the relevant people know you've moved, the bills will pile up in your old house. All you need is for a dishonest person to move in and hey presto - your identity's stolen.

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HOW THIS IS MONEY CAN HELP

For the same reason, if you go on holiday, ask your neighbours to check that your mail is pushed through the door.

It's an obvious security risk if your bank statements, gas bills and those annoying pre-filled credit card forms are available for anyone in the area to come along and pick up - in your name.

3. Shred your old paperwork

For the same reason that you don't want people to open your mail once you've moved, you also don't want them to be able to go through your rubbish and find documents that you might have thrown away.

Old receipts will have your card details on them, old bills will have your name and address. You're asking for trouble by not destroying them before throwing them away. Cut up your cards when you get new ones issued or you cancel them.

4. Keep your eyes peeled

A quick poll of the staff at This is Money and Financial Mail reveals that two people, and the partner of a third, have all had their card skimmed.

It's amazingly simple and surprisingly common. You hand your card over in a bar, restaurant or petrol station, the person serving you quickly swipes it over a machine that copies the magnetic strip and then hands your card back. Once you've left the shop, they have all the information needed to make an identical copy of your debit or credit card.

They don't have your Pin, but a clone of your card (minus the chip) could be used abroad where the Chip & Pin system has not been introduced. And here in the UK it can be used online to make purchases at any number of websites.

5. Check your account regularly

Keep your eye on your account transactions. Make good use of your internet banking service to check your current account statement regularly. If you spot anything unusual,

A great way of quickly and easily checking spending on your account is signing up to internet banking. If you see anything unusual - such as unknown transaction - contact your bank to report the fraud immediately, otherwise you may encounter complications in getting your money back.

6. Protect your Pin

Be wary when keying in your Pin at the ATM or the till, make sure it is different from other passwords, don't write it down anywhere and never, ever tell anyone else what it is.

If you have told someone your Pin, or you have your handbag stolen and your Pin is written down somewhere in your wallet, you could be liable for any losses.

The condition of having a Pin is that it's a secret. If you tell someone what it is, you have given them full and legitimate access to your money and you will be at fault if they steal it.

Security: Don't let anyone know your bank card Pin

Don't make it a number that might be
obvious to anyone who knows you (like your birthday) or to anyone else
who might randomly try a Pin (like 1234).

Despite
the fact that banks should foot the bill if your account is
fraudulently accessed, more and more often consumers are having their
claims refused. The responsibility appears to have shifted to consumers
and you should do everything possible to ensure that your Pin is secret
and unable to be guessed.

If
you come across fraudulent activity on your account, it is important
that you contact your bank immediately to notify them. If you do not,
this may complicate your efforts to get your money back.

7. Check your credit

Keeping track of what's on your credit file is a good way of checking whether anyone has applied for cards, loans or bank accounts in your name.

You can see which institutions have checked your credit file recently, which they will only do if you (or someone pretending to be you) has applied for finance or tried to open a new account. There are several agencies, including Experian, Equifax and Call Credit.

8. Be wary of unsecured connections

Be careful when logging into your internet banking or shopping online via a shared computer. If other people are able to access your information this can leave you open to fraud.

You should also ensure you have the correct firewalls set up on your computer, tablet or smartphone, so that hackers cannot get access to your data.

9. Don't click on phishing emails

We've said it before and we'll continue saying it. Banks and building societies will never send you an email asking you for your personal details. If you get an email from your bank, it's very unlikely to be legitimate, and if it's asking you to click on a link and enter your personal details, it's a 'phishing' email from criminals trying to steal your bank details.

If you really do think an email you received might be a genuine attempt by your bank to contact you, call your bank and deal with it over the phone. Don't click on any links and don't enter any passwords or you could find that you're the latest victim of online fraud.

And finally...

10. Sign up the This is Money newsletter for the latest information on identity fraud.

We'll keep you alert to the latest scams and tips on avoiding being hit by fraudsters as well as updating you on the latest news from the personal finance and business world.

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